Yesterday on Tuesday, US stocks rose, amid rising oil prices and continued growth in the Eurozone banking sector. The US banking sector was also the growth leader, amid positive assessments of the US economy from Fed Chairman Yellen. The US market, as expected, ignored the geopolitical risks after the assassination of the Russian ambassador to Turkey and the terrorist attack in Berlin. The demand for shares in the manufacturing sector remains stable after the presidential election – investors are convinced that Trump will help attract new investment and pursue a policy of deregulation in relation to industry. The Dow Jones Industrial Average gained 91.56 points, or 0.46%, closing at 19.974.62. The S & P 500 rose 8.23 ​​points, or 0.36%, ending the session at 2,270.76. The Nasdaq Composite Index added during the bidding 26.50 points, or 0.49%, to close at 5,483.94. Earlier today, December 21, most Asian stock markets followed the US market, mainly against the backdrop of rising oil prices and Beijing’s new moves to combat capital outflows. The Chinese authorities are ready to strengthen supervision of banking activities, in order to exclude shadow turnover and reduce capital outflows. Oil prices rose after, according to the American Petroleum Institute, showed a decrease in US oil reserves by 4.150 million barrels. Shares of BHP Billiton rose 1.4%, Oil Search added 0.8%, Sinopec rose 1.4% and Japan Petroleum rose 0.9%. The Japanese stock market fell slightly, responding to the strengthening of the yen, during the Asian trading, as well as against the background of local profit taking. The head of the Bank of Japan, Haruhiko Kuroda, said at a press conference on Tuesday that he sees no problems with the recent decline of the yen against the dollar, saying that the currency just returned to the level of the beginning of this year, adding that this is the level that shouldn’t surprise. Markets took Kurod’s statement as a sign that the Bank of Japan intends to keep interest rates low in order to help weaken the yen more and stir up inflation. Nikkei Stock Average fell during trading on -50.04 points, or -0.26%, ending trading at 19,444.49. The SP ASX 200 index rose 22.40 points, or 0.40%, ending trading at 5,613.47 . The Shanghai Composite Index jumped 34.55 points, or 1.11%, to close at 3,137.43. The Hang Seng Index rises by 152.43 points, or 0.70%.

On FOREX, after yesterday’s correction to the top, the USD / JPY currency pair quotes are falling again. The MACD indicator began to decline, indicating the bears are returning to the market, while the RSI indicator is in the overbought zone, which indicates a possible downward correction. In case of a continuation of the decline and breakdown of the Low level of yesterday’s daily candle, the bears may continue to move south to practice the key support level of 116.01. Alternative option. Moving averages indicate a continuation of the bullish trend. In case of resumption of growth, the quotes of the USD / JPY currency pair and the breakdown of the High level, yesterday’s daily candle, the bulls can continue the upward movement in the direction of the key resistance level of 121.68.

Yesterday, on the daily chart of the AUD / USD currency pair, a reversal candle was formed a hammer. The MACD indicator continues to decline, indicating the bear potential remains intact, while moving averages point to a continuation of the bearish trend. In this situation, it is worth considering two scenarios. So, in the event of a resumption of the decline and breakdown of the Low level of yesterday’s daily candle, the bears can continue the downward movement, to work out the key support level of 0.7144. At the same time, in case of resumption of growth, the quotes of the AUD / USD currency pair and the breakdown of the High level of yesterday’s daily candle, the bulls can continue the correction to the top, to the key resistance level of 0.7305.

Yesterday, on the daily chart of the NZD / USD currency pair, a reversal candle was formed a hammer, which is a strong bullish signal. The MACD indicator continues to decline, showing the strength of bears. In this situation, it is worth considering two scenarios. In case of resumption of growth and the return to the boundaries of the downward channel, the bulls may begin a correction to the north, in the direction of the key resistance level of 0.7053. At the same time, in the event of a resumption of the decline and breakdown of the Low level of yesterday’s daily candle, the bears may continue the downward movement, to test the key support level of 0.6880.

Gold quotes continue to fly, slightly below the key resistance level of 1142.34. Moving averages still show a continuing bearish trend. At the same time, the RSI indicator is in the oversold zone, indicating the likelihood of a bullish correction, and the MACD indicator has begun to grow, indicating a return to the bull market. In this situation, it is worth considering two scenarios. In the case of continued growth of quotations of gold and breakdown, the key resistance level of 1143.43, the bulls will be able to continue the correction upwards, in the direction of the key resistance level of 1206.80. At the same time, in the event of a resumption of gold quotations and a breakdown of the Low level of yesterday’s daily candle, the bears may continue their downward movement towards the key support level of 1081.15.

Overview prepared by Fort Financial Services Analytics

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